REPORT TO MAYOR AND COUNCIL

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1 AGENDA ITEM NO. 3.f REPORT TO MAYOR AND COUNCIL TO THE HONORABLE MAYOR AND COUNCIL: DATE: April 5, 2011 SUBJECT: AWARD OF CONSTRUCTION CONTRACT IN THE AMOUNT OF $219,556 TO DON GARCIA EXCAVATING AND PAVING, INC. OF SOUTH LAKE TAHOE, CA; REJECT TWO BIDS AND ONE BID PROTEST; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH VALI COOPER AND ASSOCIATES OF SACRAMENTO IN THE AMOUNT OF $42,570 FOR CONSTRUCTION INSPECTION SERVICES FOR PROJECT NO (PAVE LOOP ROAD AT CAMP CONCORD, PHASES II & III) (MEASURE WW & PARKLAND FUNDS) Report in Brief Project No (Pave Loop Road at Camp Concord, Phases II & III) will provide for the re-grading and paving of the remaining 1,300 feet of existing dirt road and associated parking spaces at Camp Concord, South Lake Tahoe (Attachment 1). Also included in the project scope is the installation of Asphalt Concrete (AC) curb, associated drainage structures and miscellaneous Americans with Disability Act (ADA) improvements. Bids were opened at 10:00 a.m. on Wednesday, January 26, Don Garcia Excavating and Paving, Inc. (Don Garcia) of South Lake Tahoe submitted the lowest responsive and responsible bid of $219,556. Don Garcia has an appropriate, valid contractor s license and satisfactory work references. Due to personnel reductions in August 2009 and current CIP division workload, there is not adequate staffing available to perform the necessary construction inspection services for this project based on the June 2011 completion date. Therefore, staff recommends hiring an outside consultant through a Professional Services Agreement to perform construction inspection services for this project. Vali Cooper & Associates (VCA) has recently performed work for the City and submitted a reasonable proposal for this project in the amount of $42,570. Staff recommends that the City Council award a Construction Contract in the amount of $219,556 to Don Garcia Excavating and Paving, Inc. of South Lake Tahoe; reject two bids and one bid protest; and approve a Professional Services Agreement with Vali Cooper and Associates of Sacramento in the amount of $42,570 for construction inspection services for Project No (Pave Loop Road at Camp Concord, Phases II & III); and authorize the City Manager to execute the agreements. Background Phase I In June 2008, the City Council approved Project No (Pave Loop Road at Camp Concord) when it adopted the FY Capital Improvement Program (CIP) 10-Year Plan. The U.S. Forest Service, as the

2 AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $219,556 TO DON GARCIA EXCAVATING AND PAVING, INC. OF SOUTH LAKE TAHOE, CA; REJECT TWO BIDS AND ONE BID PROTEST; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH VALI COOPER AND ASSOCIATES OF SACRAMENTO IN THE AMOUNT OF $42,570 FOR CONSTRUCTION INSPECTION SERVICES FOR PROJECT NO (PAVE LOOP ROAD AT CAMP CONCORD, PHASES II & III) (MEASURE WW & PARKLAND FUNDS) April 5, 2011 Page 2 landowner of Camp Concord, mandated that the Camp reduce the pervious surface of the existing dirt loop road to minimize erosion and control dust. The Forest Service initially required the City to pave the road by October 2007, but due to funding constraints, the City requested an extension and proposed a three-phase project over six fiscal years. The Forest Service approved the extension and the City s phasing proposal. The construction contract for Project No Phase I was awarded by the City Council in July 2008 and included the re-grading and paving of approximately 700 feet of the existing dirt road with three inches of new Asphalt Concrete (AC), as well as installation of AC curb and associated drainage structures. The project was completed in September Phases II & III The scope of work for Phases II & III includes re-grading and paving the remaining 1,300 feet of existing dirt road and associated parking spaces with three inches of AC. Also included in the project scope is the installation of AC curb, associated drainage structures and miscellaneous Americans with Disability Act (ADA) improvements. Based on the City Council s approval of the 2010 Measure WW funding allocation plan in March 2010, Phases II and III have been combined into one project. The bid opening was held at 10:00 a.m. on Wednesday, January 26, Seven (7) bids were received, ranging from $187,000 to $305,880, as shown on the Bid Results (Attachment 2, Exhibit A). The Engineer s Estimate was $280,000. West Coast Asphalt Maintenance, Inc. (West Coast) of Reno, Nevada submitted the apparent low bid of $187,000, followed by Herback General Engineering, Inc. (Herback) of Minden, Nevada at $209,443 and Don Garcia Excavating and Paving, Inc. (Don Garcia) of South Lake Tahoe at $219,556. Discussion Low Bidder is Non-Responsive West Coast, the apparent low bidder, submitted a photocopy of their bid and the required bid bond. Caltrans Standard Specifications, May 2006, Section , Proposal Forms, which are part of the bid documents, states that...copies or facsimiles of the bidder's completed and executed proposal forms submitted as a bid will be rejected. Staff reviewed the matter with the City Attorney and recommends that the City Council reject West Coast s bid due to non-responsiveness. West Coast was notified in writing on January 31, 2011 that their bid would be recommended for rejection to the City Council due to non-responsiveness. Second Lowest Bidder is Non-Responsible Due to the recommended rejection of West Coast s bid, Herback was then the low bidder. Staff reviewed Herback s bid and determined that it was responsive. Subsequently, staff contacted one of Herback s listed references, Caltrans, regarding Caltrans Project No (Left Turn Lane Project) that was completed in 2010 and received unfavorable feedback. Due to this feedback, City staff contacted an unlisted reference, Placer

3 AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $219,556 TO DON GARCIA EXCAVATING AND PAVING, INC. OF SOUTH LAKE TAHOE, CA; REJECT TWO BIDS AND ONE BID PROTEST; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH VALI COOPER AND ASSOCIATES OF SACRAMENTO IN THE AMOUNT OF $42,570 FOR CONSTRUCTION INSPECTION SERVICES FOR PROJECT NO (PAVE LOOP ROAD AT CAMP CONCORD, PHASES II & III) (MEASURE WW & PARKLAND FUNDS) April 5, 2011 Page 3 County Public Works. Placer County provided unfavorable feedback regarding its Storm Drain project on Fox Street, Kings Beach, CA that was completed by Herback in 2010 (Attachment 2, Exhibit B). Staff has reviewed the feedback provided by Caltrans and Placer County Public Works pursuant to Public Contract Code 1103, which defines a responsible bidder as a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract and has consulted with the City Attorney. Based on the information provided, staff has determined that Herback is a non-responsible bidder and has recommended that the City Council reject their bid due to non-responsibility. City of Concord s Offer for an Administrative Hearing Upon making the determination to recommend rejection of Herback s bid, staff contacted Herback s offices on Friday, March 4, 2011 and provided the unfavorable feedback received by staff, informing them that the City Attorney had reviewed the matter and that staff would be recommending rejection of Herback s bid to the City Council based on non-responsibility. Staff offered to provide Herback an Administrative Hearing to discuss the issue and a tentative date was set for Wednesday, March 9, 2011, contingent upon Mr. Herback s availability. Staff contacted Herback s office on Tuesday, March 8 th to confirm the meeting and was notified that Herback would decline the offer and not contest staff s recommendation to reject their bid. Staff notified Herback in writing on March 21, 2011 that it would recommend rejection of their bid to the City Council (Attachment 2). Bid Protest Filed by Third Lowest Bidder On January 31, 2011, Don Garcia Excavating and Paving, Inc. formally submitted a bid protest protesting the West Coast and Herback bids (Attachment 2, Exhibit C). Though not clearly stated in their letter, Don Garcia inferred that bidders were required to list a licensed land surveyor as a subcontractor for Item No. 3, Construction Staking, and since West Coast and Herback did not do so, the City should reject their bids based on nonresponsiveness. The City Attorney has reviewed the bid protest and has determined that licensed land surveyors are not required to be listed as a subcontractor based on: (1) Public Contract Code Section 4113, which defines the term subcontractor by reference to the Contractors State License law in the Business and Professions Code. Section 7026 of the Business and Professions Code defines the term contractor in a manner which does not include licensed land surveyors; and (2) a subcontractor is required to be listed in a bid for the construction of streets or highways only if the amount of work it will perform exceeds one-half of one percent of the prime contractor's total bid or ten thousand dollars, whichever is greater. Based on their bids listed for Item No. 3, West Coast and Herback were compliant with this requirement (Attachment 2, Exhibit D). Accordingly, staff recommended rejecting the bid protest from Don Garcia. Don Garcia was notified in writing on March 21, 2011 that staff would recommend rejection of their bid protest to the City Council.

4 AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $219,556 TO DON GARCIA EXCAVATING AND PAVING, INC. OF SOUTH LAKE TAHOE, CA; REJECT TWO BIDS AND ONE BID PROTEST; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH VALI COOPER AND ASSOCIATES OF SACRAMENTO IN THE AMOUNT OF $42,570 FOR CONSTRUCTION INSPECTION SERVICES FOR PROJECT NO (PAVE LOOP ROAD AT CAMP CONCORD, PHASES II & III) (MEASURE WW & PARKLAND FUNDS) April 5, 2011 Page 4 Construction Contract Due to the recommended rejection of bids submitted by West Coast and Herback, Don Garcia becomes the low bidder. Don Garcia s bid of $219,556 is approximately 22% lower than the Engineer s Estimate of $280,000. Staff has completed its bid analysis of Don Garcia s bid proposal. They possess an appropriate, valid contractor s license, and have provided satisfactory references. Staff has determined Don Garcia to be a responsive and responsible bidder. Don Garcia confirmed that they are comfortable with their bid amount and ready to perform the work as bid. Environmental Compliance The project is categorically exempt from the requirement for preparation of an environmental document in as provided for in Section of the California Environmental Quality Act. CEQA exemption 15301(c) refers to existing streets and similar facilities that include road grading for the purpose of public safety. The Notice of Exemption was filed with the County Recorder s Office on September 18, The project schedule calls for beginning construction in May 2011, and completing the work in June This expedited construction schedule will minimize impacts to Camp Concord operations that are scheduled to begin in mid-june Professional Services Agreement for Construction Inspection Due to personnel reductions, staff availability, workload, and the remote project location, staff determined it would be most cost effective for the construction inspection duties to be performed by an outside consultant. Based on the short project schedule, construction inspection services will be required for the entire time the contractor is working, which is estimated at twelve hours per day. A formal Request for Proposals (RFP) was not warranted based on the expected low cost for inspection services. Subsequently, staff identified two firms near the remote project location who have previously provided various services to the City. Only one firm, Vali Cooper & Associates (VCA) of Sacramento, was able to meet the City s needs to provide construction inspection services. The other firm, Harris Associates, was the designer of the subject project and typically, the City does not contract with one firm to provide both design and construction inspection services on the same project. VCA s Bay Area offices in Richmond and San Rafael have provided on-call construction management and inspection services for the City of Concord in 2000, 2003, and VCA has successfully managed numerous federally-funded projects and is currently providing construction inspection services for PJ 2064 (Monument Corridor Pedestrian Infrastructure Improvements). Staff solicited a proposal from Vali Cooper and has determined that their rates, allocation of hours and total costs are reasonable for this project. Vali Cooper s not-to-exceed total fee of $42,570 is about 15% of the estimated construction cost of $280,000, which falls within the standard range of 10-15% for this type of work. As

5 AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $219,556 TO DON GARCIA EXCAVATING AND PAVING, INC. OF SOUTH LAKE TAHOE, CA; REJECT TWO BIDS AND ONE BID PROTEST; AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH VALI COOPER AND ASSOCIATES OF SACRAMENTO IN THE AMOUNT OF $42,570 FOR CONSTRUCTION INSPECTION SERVICES FOR PROJECT NO (PAVE LOOP ROAD AT CAMP CONCORD, PHASES II & III) (MEASURE WW & PARKLAND FUNDS) April 5, 2011 Page 5 mentioned above, the current schedule calls for construction to begin in May 2011 and be completed in June Approving the Agreement with Vali Cooper will allow the project to proceed in a timely manner and be completed on time. The proposed agreement for this contract (Attachment 3) has been reviewed by the City Attorney s Office. Fiscal Impact The project budget, which consists of Measure WW grant funds and Parkland funds, is sufficient to fully fund the cost of construction and construction inspection. Public Contact The Notice to Contractors describing the project and scheduled bid opening was published in the Tahoe Daily Tribune on January 5, 12 and 19, 2010 and posted on ebidboard.com on January 4, The City Council Agenda was posted. Recommendation for Action Staff recommends that the City Council award a Construction Contract in the amount of $219,556 to Don Garcia Excavating and Paving, Inc. of South Lake Tahoe; reject two bids and one bid protest; and approve a Professional Services Agreement with Vali Cooper and Associates of Sacramento in the amount of $42,570 for construction inspection services for Project No (Pave Loop Road at Camp Concord, Phases II & III); and authorize the City Manager to execute the agreements. Prepared by: Daniel A. Sequeira, PE Acting Assistant City Engineer daniel.sequeira@ci.concord.ca.us Reviewed by: Danea Gemmell, PE Acting City Engineer danea.gemmell@ci.concord.ca.us Daniel E. Keen City Manager dan.keen@ci.concord.ca.us Attachment 1 Location and Vicinity Maps Attachment 2 Letter to Herback General Engineering, Inc. Attachment 3 Professional Services Agreement Vali Cooper and Associates

6 ATTACHMENT 1 Lake Tahoe Fallen Leaf Lake PROJECT SITE LOCATION MAP PROJECT SITE VICINITY MAP PROJECT NO Pave Loop Road at Camp Concord, Phase II & III NO SCALE

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